Performance Bond
Performance Bond Surety Not Liable if Underlying Contract Was Not Terminated
February 15th, 2021
A modular construction subcontractor provided a performance bond to the prime contractor in the AIA form A312-2010. The GC later claimed that the modular sub failed to properly perform its work, including “that more than 260 windows were leaking an…
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Categories: Construction
Surety’s Site Access Limited after Denying Bond Claim
May 24th, 2017
If a performance bond surety denies a claim under the bond, does it still have access to the site to investigate? A federal court judge has determined that there is no automatic right of access under those circumstances, crafting a regimen that allow…
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Categories: Construction
Pursuing a Performance Bond? Follow the Terms of the Bond
December 15th, 2016
A contractor seeking almost $1 million in claimed cost overruns against a subcontractor’s bond has been reminded that the bond terms must be followed. Or else. The bond required the prime contractor, as bond obligee, to do three things: (a) give no…
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Categories: Construction
No default notice = No performance bond recovery
February 11th, 2016
A five-sentence decision from the Eighth Circuit Federal Court of Appeal may not be a record, but it sends a blunt message: failure to provide notice of default is fatal to a performance bond claim. The reader has to go back to the lower court decisi…
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Categories: Construction
About Stan Martin
Stan Martin holds a law degree and an undergraduate degree in architecture. He has been involved with the construction industry for more than 45 years, working in construction prior to law school and beginning his construction law practice. During his career, he has been actively involved with the Associated General Contractors of Massachusetts, the Boston Society of Architects, the American Arbitration Association, and the Massachusetts Building Congress.